1996 (6) TMI 264 - AT - Customs

Fabrics - Narrow woven fabrics being mentioned after comma under Notification No. 30/95-Cus.,

Summary

Issues: Interpretation of Notification No. 30/95 dated 16-3-1995 for exemption under CESA, 1944

In the present case, the main issue revolves around the interpretation of Notification No. 30/95 dated 16-3-1995 for exemption under the Central Excise Tariff Act, 1985. The question at hand is whether the appellants are entitled to the benefit of this notification. The Tribunal is tasked with determining the correct interpretation of the notification and deciding whether the appellants qualify for the exemption provided therein.

Analysis:

The Tribunal notes that the appeals are directed against the orders passed by the C.C. (Appeals), Madras, where it was held that the appellants are not entitled to the benefit of Notification No. 30/95 dated 16-3-1995. Since all three appeals involve a common issue, the Tribunal decides to address them collectively through a common order.

The central point for determination in these appeals is whether the appellants meet the criteria for the benefit of the aforementioned notification. The notification exempts specific goods falling within Chapter 58 of the Schedule to the Central Excise Tariff Act, 1985 from a portion of the excise duty leviable on them. The Tribunal reproduces the relevant portion of the notification to aid in understanding the context and scope of the exemption.

The lower adjudicating authority had interpreted that narrow woven fabrics should be considered under the general clause encompassing various types of fabrics listed in the notification. However, the appellants' counsels argue that narrow woven fabrics should be treated as a separate class falling under a distinct Tariff Item. They rely on legal precedents and decisions to support their contention that narrow woven fabrics should be read disjunctively from the preceding items in the notification.

In contrast, the SDR representing the respondents contends that narrow woven fabrics should be included within the broader category of fabrics mentioned in the notification and not treated as a separate item. The SDR relies on a Tribunal decision to support this interpretation.

After considering the submissions from both parties, the Tribunal analyzes the structure of the notification and the placement of narrow woven fabrics within it. The Tribunal observes that the notification lists specific items under different Tariff Items with commas separating them. Given the punctuation and structure of the notification, the Tribunal agrees with the appellants' interpretation that narrow woven fabrics should be read disjunctively as a distinct category.

The Tribunal references decisions of the Hon'ble Supreme Court cited by the appellants' counsels to support their interpretation. It concludes that the rationale provided in the impugned order, suggesting that narrow woven fabrics should fall under the general clause of preceding items, is not tenable based on the Supreme Court's guidance on similar matters. Therefore, the Tribunal allows the appeals, granting the appellants the consequential relief of the benefit under Notification No. 30/95 dated 16-3-1995.

In summary, the Tribunal's decision hinges on the correct interpretation of the notification and the placement of narrow woven fabrics within the scope of the exemption provided. By analyzing the structure of the notification and relying on legal precedents, the Tribunal determines that narrow woven fabrics should be treated as a separate class eligible for the exemption, contrary to the lower adjudicating authority's interpretation.